Payment company PayPal will launch the function of buying, selling and storing bitcoin and other cryptocurrencies. Its mobile payment service Venmo will add this capability in 2021, writes Reuters.
PayPal expects the new feature to spur global use of cryptocurrencies and prepare the network for central bank digital currencies.
“We work with central banks and think about all forms of digital currencies and what role PayPal can play,” said CEO Dan Shulman.
It is expected that by early 2021, PayPal customers will be able to use Bitcoin to pay for goods at 26 million retail outlets. Cryptocurrency transactions will be automatically converted to fiat. This means that merchants will not have to go beyond the traditional system they are used to, PayPal noted.
The company received a limited license from the New York State Department of Financial Services to carry out the new function.
Representatives of the department noted that such a permit is issued to organizations that have entered into partnerships with licensed firms. In this case, PayPal works with Paxos.
As a reminder, the payment giant chose this company to manage crypto assets in July 2020.
Rumors about PayPal's plans to add support for cryptocurrencies have been around for a long time. In June, it was reported that the Venmo payment system and service would provide users with the option to trade digital assets within three months.